Correlation Between SunLink Health and Intchains Group
Can any of the company-specific risk be diversified away by investing in both SunLink Health and Intchains Group at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining SunLink Health and Intchains Group into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between SunLink Health Systems and Intchains Group Limited, you can compare the effects of market volatilities on SunLink Health and Intchains Group and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in SunLink Health with a short position of Intchains Group. Check out your portfolio center. Please also check ongoing floating volatility patterns of SunLink Health and Intchains Group.
Diversification Opportunities for SunLink Health and Intchains Group
-0.23 | Correlation Coefficient |
Very good diversification
The 3 months correlation between SunLink and Intchains is -0.23. Overlapping area represents the amount of risk that can be diversified away by holding SunLink Health Systems and Intchains Group Limited in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Intchains Group and SunLink Health is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on SunLink Health Systems are associated (or correlated) with Intchains Group. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Intchains Group has no effect on the direction of SunLink Health i.e., SunLink Health and Intchains Group go up and down completely randomly.
Pair Corralation between SunLink Health and Intchains Group
Considering the 90-day investment horizon SunLink Health Systems is expected to generate 0.59 times more return on investment than Intchains Group. However, SunLink Health Systems is 1.69 times less risky than Intchains Group. It trades about 0.05 of its potential returns per unit of risk. Intchains Group Limited is currently generating about -0.08 per unit of risk. If you would invest 80.00 in SunLink Health Systems on September 2, 2024 and sell it today you would earn a total of 6.00 from holding SunLink Health Systems or generate 7.5% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Against |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
SunLink Health Systems vs. Intchains Group Limited
Performance |
| Timeline |
| SunLink Health Systems |
| Intchains Group |
SunLink Health and Intchains Group Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with SunLink Health and Intchains Group
The main advantage of trading using opposite SunLink Health and Intchains Group positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if SunLink Health position performs unexpectedly, Intchains Group can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Intchains Group will offset losses from the drop in Intchains Group's long position.| SunLink Health vs. Humana Inc | SunLink Health vs. Cigna Corp | SunLink Health vs. Elevance Health | SunLink Health vs. Centene Corp |
| Intchains Group vs. The Gap, | Intchains Group vs. BBB Foods | Intchains Group vs. SunLink Health Systems | Intchains Group vs. Transocean |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Bollinger Bands module to use Bollinger Bands indicator to analyze target price for a given investing horizon.
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